MIDLANDS-BASED businesses are optimistic about their future growth prospects in spite of the current economic situation.

The average company in the East Midlands with a turnover of £20million or less expects to grow its revenue by 68 per cent over the next five years – around 11 per cent per year – according to new research from Santander Business Banking.

These business owners are slight more cautious about their longer term growth prospects than they were a year ago when they said the average five-year growth expectation was 88 per cent.

Nationally, the average company with a turnover of up to £20million expects to grow its revenue by 88 per cent over the next five years.

While this is more cautious than the 104 per cent growth predicted a year ago, Britain’s business community remains far more optimistic than the Office for Budget Responsibility’s forecast of 11 per cent GDP growth between now and 2016.

With difficult trading conditions, business owners in the East Midlands are looking to explore new options to help achieve their growth ambitions with one in ten saying that starting another business is an immediate priority.

Moreover, despite the fall in optimism against last year’s survey in 2011, one in five firms in the East Midlands surveyed by Santander say their business has never been in better shape.

The trading environment is identified as the biggest challenge facing companies in the East Midlands looking to grow, according to around half – 47 per cent – of the business owners surveyed.

Nick Pulley, regional director of Santander Corporate Banking in the East Midlands, said: “While business owners remain cautious in the short term, focusing on survival against an uncertain economic background, they are clearly optimistic in their longer term prospects. Many people think survival is about holding onto their cash but in order to promote longer term growth, businesses need to continue to invest.”